In a few words, recession-proof is defined as an entity that is financially resistant to any small to moderate economic downturns.
Recession-proof can refer to assets like gold or treasury bonds. These assets don’t have a correlative relationship with the greater market. This term can also refer to industries that rely on factors outside of consumerism.
Utilities and health care, for example, are resistant because people will always need these services.
Recession-proof is, of course, a relative term. No asset or industry is completely safe from financial distress. You still need to make smart choices while running your business.
Choosing a recession-proof business, however, will mean you are taking on less risk.
The entire health care industry has been labeled recession-proof. That’s because its main services are considered essential to society. On a list of medical franchises, however, senior health care franchises shine.
Opening a franchise for senior health means not only choosing a recession-proof business but a booming business.
Senior at-home health care is the preferred choice for families and seniors who need assistance. Senior health care franchises offer aides to nurses who can tend to seniors’ needs without removing them from their familiar environment and family members. Seniors would rather have professionals come to their homes rather than go to long-term care facilities.
This preference is anchored in compassion and desire for the comforts of home and family, but it is bolstered by its affordability. Many families do not have the financial means to pay for their loved ones to live full-time at a nursing home. They might not even have the means to pay for the specialized care that their loved ones require.
On average, nursing home care can cost $70,000 a year, which is 75% more than the average cost of at-home care. Instead of paying for a nursing home, families can allow their loved ones to stay at home.
Instead of turning to a nursing home, families can pay for an at-home health care plan that they can afford and works best for their situation. A senior health care franchise near them can consult and guide them in finding a plan that fits best.
Aides and nurses can go to the home at a frequency and length of time that the senior needs and the family can afford. As the senior’s needs or family’s situation changes, the plan can change.
Many times, because of economic strife, families will have to pick up more work hours or a second job. This change can often come at the detriment of seniors who rely on their families for care. If the family needs to pick up more hours, they may need to change their plans to help care for their loved ones.
Because of this flexibility and affordability, families can weather financial downturns. They won’t have to sacrifice care for their loved ones. A recession might affect the family’s finances, but it won’t stop their seniors from needing care and a medical home health care franchise can offer that.
While families turn to at-home care as a more affordable and friendly option for senior care, the population churns out more demand as well. Since 2011, the Baby Boomer generation has been reaching the age of 65. Once you are 65 and older, your chances of needing senior care spike drastically.
You might be thinking, “Yes, people are turning 65 every day. What’s the point?”
The Baby Boomer generation is a huge generation that overpowers the others who came before it. Our healthcare system has never had to deal with so many people in one age bracket before. With each passing year, this age bracket grows beyond our current available health care capacity.
Not only are there about 76.4 million baby boomers, but there are also 71.4 million who will be 65+ years old by 2029. Additionally, medical advancements have been making our longevity improve. In turn, we almost have an entire generation who are now seniors and will live much longer than usual.
These changes put a heavy demand on our health care system.
The Baby Boomer generation has a lot of ramifications for our health care system. The most important thing to know for non-medical home health care franchises, though, is that this is great news.
The United States Bureau of Labor Statistics estimates that the demand for in-home health aides will grow about 34% between 2019 and 2029. This growth is much faster than the average of other occupations. As more people age, more will turn to senior care at home as the preferred option.
The outlook for senior health care franchises is bright. Business owners in senior health care franchises can expect continued growth for decades. This growth will outweigh any concerns and risks of the economy.
Simply put, people will need health care regardless of financial situation. People will continue to age, develop disabilities and illnesses, and need further help. Consequently, we have policies like the inability to turn away patients at hospitals.
The need for health care will not go away. Any changes in the economy will not affect the way we run health care services.
Because it is a necessity, families will sacrifice other luxuries so that they can afford health care. Seniors, at least we hope, will not lose their health care because their families choose to sacrifice it in the name of fancy cable television.
It’s been proven time and time again that the health care industry and the jobs that bolster it are in steady demand despite historic recessions. In particular, senior health care, pharmaceuticals, and contraceptives are the top sectors of health care that boom despite all odds.
When things get difficult, certain aspects of health care might suffer. People might have to forgo unnecessary procedures or more expensive services. For example, a family might not be able to afford a nursing home.
Running a senior at-home franchise means you are running the affordable option that is flexible and preferred.
A good reason why senior at-home care franchises work well in economic recessions goes beyond just the demand for health care. Senior care franchises depend on people rather than goods and materials to run their business.
While restaurants and retail stores depend on their supply chain and sell material things as their source of income, senior care franchises do not. Instead, senior care franchises just need trained professionals to offer services. Any disruptions in supply chains or price-hikes for materials will not directly affect the services that senior home care franchises offer.
Depending on people rather than goods is a great situation in which to find yourself during financially difficult times.
Many small business owners dread economic downturns because they are often hit the hardest. Smaller businesses cost less to run than large businesses, but also take in less money and have a smaller margin of error. Without a large corporation and huge funds to help buffer economic hardship, many small businesses close down when finances are in trouble.
Choosing to own a franchise location gives you the feel of owning a small business and being your own boss, but also offers you the support of a corporation. During an economic downturn, you won’t be on your own.
You’ll have access to the resources from your franchise company to speak with business, marketing, and sales consultants and get direction from the company on how to handle the current situation. You’ll already have received training so you can run your business smoothly.
Not to mention, many small businesses owners open their operations with a business model built from scratch. They’ve done everything themselves and might not have fully proven the validity of their business.
Small business owners that have chosen franchises can open their doors with confidence. Franchises have a proven business model that is running successfully in many locations all over. Choosing a franchise also means that you can look into the past success of the company and see that they have weathered economic storms before.
The pandemic has caused many side effects to society beyond serious illness and casualties. Lockdowns and fear have kept people in their homes for over a year. Many have become partial to their home’s promise of security.
Experts believe that even after mask mandates and social distancing go away, people will spend more time at home.
People have also gotten used to technology in health care. The new technology that has long functioned on the fringe of the industry, such as telehealth, is now embraced.
Zoom meetings, for example, used to be a solution for rare cases. Now, people meet more over Zoom than in person.
Even the senior population, which has the reputation for not having as much experience with technology, has embraced phones and computers as a way to communicate with health care professionals.
This is all happening without even the mention of hospitals, which have been crushed under the weight of serious COVID cases. People who could once rely on hospital care for serious diseases, especially the elderly, are now either too afraid or not even allowed to enter hospitals because of the pandemic.
Nursing homes, infamously, were at the center of the early pandemic casualties. According to the New York Times, nursing homes are linked to nearly one-third of all COVID-related deaths. It goes without saying that seniors and their families will now prefer at-home care even more.
Now more than ever, people need health care at home. Seniors and their families can trust home health aides and nurses to take the necessary precautions against spreading COVID. That way, it is ensured that it is safe for them to enter private residences.
At the same time, seniors can avoid being exposed to large crowds at nursing homes and even doctors’ offices.
If you’re nervous about opening a small business, opening a senior health care franchise is your ticket to successful entrepreneurship. Without putting everything on the line, you can open up a location with a proven business model. Additionally, you’ll be in an industry that has proven to weather economic downturns.
Preferred Care At Home is a leading senior home health care franchise. We are looking for passionate entrepreneurs to partner with. Start your journey with us today to start offering much-needed care and compassion to seniors!